Improved connectivity could give vital boost to rural manufacturers

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Improved connectivity could increase turnover for rural manufacturing businesses by over seven per cent and add an extra £8.8bn to the economy, a new report has found.

Virgin Media O2’s work with British Sugar is an example of how manufacturers can use connectivity to boost efficiency and productivity
Virgin Media O2’s work with British Sugar is an example of how manufacturers can use connectivity to boost efficiency and productivity - British Sugar

Many factories are located away from cities and urban areas, with nearly half of manufacturing jobs located in rural areas. Recent output data shows the sector has been struggling due to the UK’s persistent productivity challenge, with most manufacturers saying they expect economic conditions in the UK to either significantly or moderately deteriorate. 

Virgin Media O2’s ‘The Great Rural Revival Report’, which is based on economic modelling from Cebr, finds improved rural connectivity could boost the UK economy by £65.1bn and increase employment by 6.8 per cent. Of the four major economic sectors analysed for their potential to benefit from improved rural connectivity, manufacturing could expect the greatest rise in turnover and highest relative rise in employment. 

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Around one in six rural manufacturing business decision makers surveyed as part of the report said they would make greater use of technologies such as remote stock checking/inventory management and fleet management technology. For manufacturers to make the best use of these technologies, they must be underpinned by connectivity that allows teams to access inventory and fleet management data in real-time, so they can act on these insights in the moment and optimise their operations.  

While the UK government’s Shared Rural Network (SRN) upgrades continue to be delivered, Virgin Media O2 is calling on policymakers, planning authorities and landlords to remove obstacles and ensure rural communities fulfil their potential.

In a statement, Jeanie York, chief technology officer at Virgin Media O2 said: “The manufacturing industry is key to the success of the UK economy, and our Great Rural Revival report demonstrates that improved connectivity can unlock an additional £8.8bn of further growth for rural manufacturing, as well as increasing employment by almost eight per cent. 

“The last decade has seen fixed and mobile networks rolled out to new corners of the UK and we are committed to continuing this rollout. By working closely with industry partners, the UK government, planning authorities and landowners, we can deliver the essential network upgrades that will enable rural manufacturers to adopt new technologies and continue to thrive.” 

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